Aqua Logistics Limited Case Study Solution and Analysis
Aqua Logistics Limited Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details provider and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Although, Aqua Logistics Limited Case Study Solution has actually spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market trends and forces bring specific obstacles to the publishing market in basic and CMP in specific. These elements include;
• Entryway of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this scenario? 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 Case Study Analysis has specific strengths that can be used to reduce the risks, conquer the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Aqua Logistics Limited Case Study Solution in the publishing market i.e. 60 years allows the company to offer high quality products at a lower expense using its prior experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and supply high worth to its clients.
• Strong financial position enables the business to think about numerous development opportunities with no worry of raising fund externally.
Along with the strengths, the company has certain weaknesses which could increase restraints for the business in executing its development program. The weak points of Aqua Logistics Limited Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular expansion plans to prevent its dependence over the Chinese markets to achieve long term growth.
The growth of the publishing market is decreasing since 2008, affecting Aqua Logistics Limited Case Study Analysis as well, but the growth could be restored by availing certain chances provided in the market. The marketplace chances for CMP consist of;
• The company could likewise present Digital Publishing by using 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 decrease its dependence over Chinese markets by utilizing its vast financial resources.
The altering macro trends in the market and increasing competitors in the publishing industry has actually postured specific hazards to Aqua Logistics Limited Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Aqua Logistics Limited Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using specific methods like aggressive promotion, quality items, and so on
• Entryway of new publishing companies in the market in addition to presence of high competition increases the threat of losing the customer base.
Due to lack of data, the financial ratios of CMP could not be computed. It might be examined from the Appendix III that the annual overall profits of Aqua Logistics Limited Case Study Solution during the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of CMP is growing and the business is quite effective in attracting a large number of clients at a possible price.
Together with it, the second chart which reveals the annual development in the Aqua Logistics Limited Case Study Analysis overall properties, reveals that the company is quite effective in including value to its possessions through its incomes. The growth in assets shows that the total worth of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business using the given information might be the analysis relating to the distribution of total incomes of the business. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company sections with a possible development to attain its future development goal.
PESTEL analysis might be carried out to learn the various external forces impacting the performance of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant influence on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. It might be said that the general political forces impacting CMP service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in general and the Aqua Logistics Limited Case Study Analysis in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the need for the publishing market. Together with it, the economic policies connected to the import of books impact the overall organisation at CPM. However, China's financial conditions are quite beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer choices.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Enhancement of science and innovation together with the increase of digital publishing might reduce the need for the CMP items, if particular actions would not be taken soon.
Ecological forces affecting Aqua Logistics Limited Case Study Help includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing should not be harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 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 Model).
Porter's 5 Forces Model might be utilized to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to attract brand-new entrants to the publishing market. However, the existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Danger of Substitution.
Danger of Replacement is high for the Chinese Publishing Market. The substitute products for the published files is the documents presented in the virtual libraries on specific sites. The changing consumer choices towards digital learning increase the danger of replacement 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 rivalry for CMP. Together with it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Aqua Logistics Limited Case Study Analysis consist of the providers 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 Buyer.
Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive costs.
CMP operates in a highly competitive industry with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Aqua Logistics Limited Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
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 could wean the market share of CMP quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also one of the prominent gamers in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Use of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
• Competitors 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 internal and external environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the company need an instant service to prevent the decreasing industry growth. Introduction of digital publishing might show to be an immediate option with low quantity of threat for the company. The company might likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business must initially gathers the data related to the customer need, the possible markets, the federal government guidelines and the information related to the rivals provided in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Although, the growth of the publishing market is declining considering that 2008, revealing a hazard to the company's long term existence, however the situation can be controlled by thinking about an advancement plan in the future. The company might consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entrance in the new markets.