Aqua Logistics Limited 5 Case Study Solution and Analysis
Aqua Logistics Limited 5 Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services including; gathering info, processing information and communication services. Major company sectors of the business include; books, periodicals, consultancy and circulation. The company has a huge item portfolio and its major items consist of books, periodicals, online media, exhibits, research reports and so on. Aqua Logistics Limited 5 Case Study Help has actually become a specialized information company and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, Aqua Logistics Limited 5 Case Study Solution has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing industry in basic and CMP in specific. These elements include;
• Entrance of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the company could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Aqua Logistics Limited 5 Case Study Help has particular strengths that can be made use of to reduce the dangers, conquer the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Aqua Logistics Limited 5 Case Study Solution in the publishing market i.e. 60 years enables the company to supply high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and supply high value to its consumers.
• Strong monetary position allows the company to consider several development chances with no worry of raising fund externally.
Together with the strengths, the business has particular weak points which could increase restrictions for the business in implementing its advancement program. The weaknesses of Aqua Logistics Limited 5 Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose certain expansion plans to avoid its dependence over the Chinese markets to achieve long term growth.
The growth of the publishing industry is declining because 2008, impacting Aqua Logistics Limited 5 Case Study Help as well, however the growth could be revived by availing particular opportunities presented in the market. The marketplace chances for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast funds.
The changing macro trends in the market and increasing competition in the publishing market has actually presented certain risks to Aqua Logistics Limited 5 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Aqua Logistics Limited 5 Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using specific techniques like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the industry together with existence of high competitors increases the danger of losing the customer base.
Due to absence of information, the monetary ratios of CMP might not be calculated. It could be examined from the Appendix III that the annual overall incomes of Aqua Logistics Limited 5 Case Study Solution throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the business is quite effective in drawing in a large number of customers at a prospective price.
In addition to it, the 2nd graph which shows the yearly development in the Aqua Logistics Limited 5 Case Study Solution total possessions, reveals that the business is rather effective in including worth to its assets through its incomes. The development in properties reveals that the overall value of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the company utilizing the given data could be the analysis relating to the distribution of total incomes of the company. Huge part of the profits 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 company segments with a possible growth to accomplish its future development goal.
PESTEL analysis could be conducted to discover the numerous external forces affecting the efficiency of the company and the current trends in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a substantial influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. Therefore, it might be said that the total political forces affecting Aqua Logistics Limited 5 Case Study Analysis company are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer choices.
Technological forces impacting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and technology in addition to the rise of digital publishing might minimize the demand for the CMP items, if particular actions would not be taken quickly.
Ecological forces impacting Aqua Logistics Limited 5 Case Study Solution consists of 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 disposable and the ink used while publishing ought to not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. The legal policies 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 ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be utilized to examine the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in brand-new entrants to the publishing market. The existence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The alternative products for the released documents is the documents presented in the digital libraries on specific websites. The altering customer choices towards digital knowing increase the risk of alternative 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 etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Aqua Logistics Limited 5 Case Study Help include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive rates.
CMP runs in a highly competitive industry with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Aqua Logistics Limited 5 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the same period, CIP publishes similar type of books. For a big time period, CIP held the biggest market share, and still ranks second and 3rd in different market sectors, with a significant focus 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 market share of Aqua Logistics Limited 5 Case Study Solution easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is likewise among the popular gamers in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
• Usage of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the business to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the company need an immediate service to avoid the decreasing market growth. Introduction of digital publishing could show to be an immediate solution with low amount of danger for the company. However, the business might also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business ought to first gathers the information related to the customer need, the possible markets, the federal government regulations and the data related to the rivals presented in the market. If the initial offering shows a success, the company needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
The growth of the publishing market is declining considering that 2008, showing a risk to the company's long term existence, but the situation can be controlled by thinking about a development plan in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.