Aqua Logistics Limited Case Study Solution and Analysis
Introduction
Aqua Logistics Limited Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information service provider and a big comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
Although, Aqua Logistics Limited Case Study Analysis has invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring particular challenges to the publishing industry in general and CMP in particular. These factors include;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The transformation of the macro markets have raised a number of 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 capabilities of the company could be made use of to pursue 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 Case Study Solution has specific strengths that can be made use of to decrease the hazards, conquer the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Aqua Logistics Limited Case Study Help in the publishing industry i.e. 60 years enables the company to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and provide high worth to its customers.
• Strong monetary position enables the business to consider a number of advancement opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weak points which could increase constraints for the business in implementing its development program. The weak points of Aqua Logistics Limited Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional 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 particular growth strategies to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing market is decreasing because 2008, affecting Aqua Logistics Limited Case Study Help too, however the development might be revived by availing certain opportunities presented in the market. The market chances for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast financial resources.
Risks
The altering macro trends in the market and increasing competitors in the publishing market has posed certain hazards to Aqua Logistics Limited Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Aqua Logistics Limited Case Study Help due to the customer shift towards digital 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 rivals can gain a strong consumer base by utilizing particular methods like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing companies in the industry along with existence of high competitors increases the hazard of losing the consumer base.
Monetary Analysis.
The company has a rather competitive financial efficiency. Due to absence of data, the financial ratios of CMP might not be calculated. Nevertheless, the total monetary performance of the business could be analyzed by using the charts given in 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 development rate, showing that the yearly need of the products of Aqua Logistics Limited Case Study Analysis is growing and the business is quite efficient in bring in a a great deal of clients at a potential price.
In addition to it, the 2nd graph which shows the annual development in the Aqua Logistics Limited Case Study Help total properties, reveals that the company is rather effective in including worth to its assets through its earnings. The growth in assets reveals that the overall worth of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company using the given data could be the analysis relating to the circulation of overall earnings of the business. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sections with a potential development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the various external forces impacting the efficiency of the business and the current trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. It could be stated that the general political forces affecting CMP business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The customer 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 altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies and so on. Enhancement of science and innovation together with the rise of digital publishing might decrease the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Aqua Logistics Limited Case Study Analysis consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to evaluate the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Threat of Substitution.
Threat of Alternative is high for the Chinese Publishing Market. The substitute items for the released documents is the documents presented in the virtual libraries on particular sites. The changing customer preferences towards digital knowing increase the danger of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Aqua Logistics Limited Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive rates.
Rivals Analysis.
CMP operates in a highly 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. Major rivals of Aqua Logistics Limited Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the same duration, CIP releases comparable type of books. For a big time period, CIP held the largest market share, and still ranks second and third in different market sectors, 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 concentrated on digital publishing and might wean the market share of Aqua Logistics Limited Case Study Analysis quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is also one of the popular gamers in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the business require an instant service to avoid the decreasing market development. Therefore, intro of digital publishing might show to be an instant option with low amount of danger for the business. The business might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business ought to first collects the information associated with the consumer need, the prospective markets, the federal government guidelines and the information related to the rivals provided in the market. After that, the company needs to choose one prospective segment for its preliminary offering. It ought to gather research study that how it could differentiate its digital publishing from the existing competitors' items. After all the steps above the business need to choose the initial offering. The business needs to go for the other markets if the preliminary offering proves a success. In this way the company would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing since 2008, revealing a danger to the business's long term existence, however the scenario can be managed by considering a development plan in the future. The business might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entrance in the new markets.
