Aqua Logistics Limited 5 Case Study Solution and Analysis
Introduction
Aqua Logistics Limited 5 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized info provider and a large thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, Aqua Logistics Limited 5 Case Study Help has invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market patterns and forces bring certain challenges to the publishing industry in general and CMP in particular. These elements consist of;
• Entryway of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The change of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Aqua Logistics Limited 5 Case Study Analysis has specific strengths that can be made use of to lower the dangers, conquer the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Aqua Logistics Limited 5 Case Study Help in the publishing market i.e. 60 years permits the business to supply high quality items at a lower cost using its prior experiences.
• The technical resources and abilities produced by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and supply high value to its clients.
• Strong financial position permits the business to think about numerous advancement opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weak points which could increase restrictions for the company in executing its advancement program. The weak points of Aqua Logistics Limited 5 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 compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose certain growth plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is declining given that 2008, impacting Aqua Logistics Limited 5 Case Study Help as well, but the growth might be restored by availing certain chances provided in the market. The market chances for CMP include;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast financial resources.
Hazards
The altering macro trends in the market and increasing competitors in the publishing industry has actually presented particular threats to Aqua Logistics Limited 5 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Aqua Logistics Limited 5 Case Study Solution due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing specific methods like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the industry in addition to existence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
The business has a rather competitive financial performance. Due to absence of information, the monetary ratios of CMP could not be determined. Nevertheless, the total monetary efficiency of the business might be analyzed by utilizing the charts given in the case Appendices. It might be analyzed from the Appendix III that the yearly overall revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of Aqua Logistics Limited 5 Case Study Solution is growing and the business is quite efficient in bring in a large number of consumers at a potential rate.
Along with it, the second chart which shows the annual development in the Aqua Logistics Limited 5 Case Study Analysis total assets, reveals that the company is quite efficient in including worth to its properties through its profits. The development in assets shows that the total worth of the company is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company using the provided information could be the analysis relating to the circulation of total revenues of the company. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business segments with a potential growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the different external forces impacting the performance of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. It might be said that the general political forces impacting CMP organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Enhancement of science and innovation along with the increase of digital publishing might decrease the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Aqua Logistics Limited 5 Case Study Analysis includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be utilized to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to bring in brand-new entrants to the publishing industry. The presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Danger of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative items for the released documents is the documents provided in the virtual libraries on particular websites. The changing consumer preferences towards digital knowing increase the hazard of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Aqua Logistics Limited 5 Case Study Help consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Aqua Logistics Limited 5 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same duration, CIP publishes similar type of books. For a large time period, CIP held the biggest market share, and still ranks third and second in different market sections, with a major concentrate on educational publications. CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the marketplace share of Aqua Logistics Limited 5 Case Study Solution quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Aqua Logistics Limited 5 Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the company need an immediate service to avoid the decreasing industry development. The company could likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company must first collects the data associated with the consumer demand, the potential markets, the government guidelines and the data connected to the competitors presented in the market. After that, the business ought to choose one possible segment for its preliminary offering. It needs to collect research that how it might distinguish its digital publishing from the existing competitors' products. The steps above the business need to go for the initial offering. The company should go for the other markets if the preliminary offering proves a success. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing since 2008, revealing a hazard to the company's long term presence, however the scenario can be controlled by considering an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
