Aqua Logistics Limited 4 Case Study Solution and Analysis
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 has actually become a specialized information provider and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Although, Aqua Logistics Limited 4 Case Study Analysis has actually invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing industry in general and CMP in particular. These factors include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised several 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 business could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Aqua Logistics Limited 4 Case Study Solution has specific strengths that can be made use of to decrease the dangers, get rid of the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Aqua Logistics Limited 4 Case Study Analysis in the publishing industry i.e. 60 years permits 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 supply a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and supply high worth to its customers.
• Strong financial position allows the company to consider several advancement opportunities without any worry of raising fund externally.
In addition to the strengths, the business has particular weaknesses which might increase restraints for the business in implementing its development program. The weak points of Aqua Logistics Limited 4 Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain expansion plans to prevent its reliance over the Chinese markets to attain long term growth.
Although, the growth of the publishing market is decreasing since 2008, affecting Aqua Logistics Limited 4 Case Study Help too, however the growth could be revived by availing certain chances provided in the market. The marketplace opportunities for CMP include;
• The company could also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its large financial resources.
The altering macro patterns in the market and increasing competitors in the publishing market has actually positioned specific dangers to Aqua Logistics Limited 4 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of Aqua Logistics Limited 4 Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing particular methods like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the market together with presence of high competitors increases the hazard of losing the consumer base.
The business has a rather competitive financial performance. Due to lack of information, the financial ratios of CMP might not be computed. The general monetary performance of the business might be evaluated by utilizing the charts given in the case Appendices. It could be analyzed from the Appendix III that the yearly overall earnings of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of Aqua Logistics Limited 4 Case Study Analysis is growing and the business is quite efficient in bring in a a great deal of consumers at a potential rate.
Together with it, the 2nd graph which shows the annual development in the Aqua Logistics Limited 4 Case Study Solution total possessions, shows that the company is quite efficient in adding value to its properties through its incomes. The growth in assets shows that the overall value of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company using the given information might be the analysis relating to the circulation of total earnings of the business. Major part of the earnings 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 segments with a prospective development to attain its future advancement goal.
PESTEL analysis might be performed to learn the various external forces impacting the efficiency of the business and the recent patterns in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a substantial influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it could be stated that the general political forces affecting Aqua Logistics Limited 4 Case Study Solution organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer choices.
Technological forces impacting the CMP consist of the technological improvement in the reading methods and so on. Improvement of science and innovation together with the rise of digital publishing could minimize the need for the CMP items, if certain actions would not be taken quickly.
Environmental forces impacting Aqua Logistics Limited 4 Case Study Help includes the concerns of ecological communities over the usage 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 needs to not be harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to examine the appearance of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to draw in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Threat of Substitution is high for the Chinese Publishing Industry. The substitute items for the published documents is the documents provided in the digital libraries on particular websites. The altering consumer choices towards digital knowing increase the threat of substitution for the industry.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Aqua Logistics Limited 4 Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive costs.
CMP operates in a highly competitive industry with the presence of large number of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Aqua Logistics Limited 4 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Aqua Logistics Limited 4 Case Study Help and CIP. It is also one of the popular gamers in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Use of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the business to lose need of its products in the market.
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future advancement. As the choices are moving towards digital publishing and the company require an immediate option to prevent the decreasing industry growth. For that reason, intro of digital publishing might show to be an immediate option with low quantity of threat for the company. The company could also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business should first collects the data related to the consumer need, the potential markets, the government guidelines and the information related to the rivals presented in the market. If the initial offering shows a success, the company must go for the other markets. In this method the business would be able to implement its digital publishing program.
Although, the growth of the publishing market is declining considering that 2008, showing a risk to the business's long term existence, but the situation can be managed by thinking about an advancement plan in the future. The company might think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entrance in the new markets.