Aqua Sim Implementation Case Study Solution and Analysis
Introduction
Aqua Sim Implementation Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info provider and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, Aqua Sim Implementation Case Study Solution has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring certain challenges to the publishing market in general and CMP in particular. These elements include;
• Entryway of the brand-new publishing companies in the market.
• Decreasing 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 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 company could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Aqua Sim Implementation Case Study Help has specific strengths that can be used to reduce the dangers, overcome the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Aqua Sim Implementation Case Study Solution in the publishing industry i.e. 60 years allows the company to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and provide high value to its clients.
• Strong financial position allows the business to consider several advancement chances without any fear of raising fund externally.
Weak points
Together with the strengths, the company has specific weak points which might increase restrictions for the company in executing its advancement program. The weak points of Aqua Sim Implementation Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the company 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 should propose specific growth strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is declining since 2008, affecting Aqua Sim Implementation Case Study Solution also, however the development could be revived by availing particular opportunities provided in the market. The market chances for CMP consist of;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast funds.
Threats
The altering macro trends in the market and increasing competition in the publishing industry has actually postured certain dangers to Aqua Sim Implementation Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Aqua Sim Implementation Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using certain strategies like aggressive promo, quality items, and so on
• Entrance of brand-new publishing companies in the market along with presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
The business has a quite competitive monetary efficiency. Due to lack of information, the financial ratios of CMP could not be determined. However, the general monetary efficiency of the company could be analyzed by using the charts given up the case Appendices. It might be evaluated from the Appendix III that the annual overall profits of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of Aqua Sim Implementation Case Study Analysis is growing and the business is quite efficient in attracting a large number of consumers at a possible price.
Along with it, the 2nd graph which shows the yearly growth in the Aqua Sim Implementation Case Study Solution overall possessions, shows that the business is quite efficient in adding worth to its assets through its revenues. The development in assets shows that the total worth of the company is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered data could be the analysis relating to the distribution of overall earnings of the business. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other company segments with a possible growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the different external forces impacting the performance of the company and the recent patterns 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 impact on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. It might be said that the general political forces affecting CMP company are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading helpful products etc. China has the highest population in the world with a high population growth, showing the increasing variety of customers of the Aqua Sim Implementation Case Study Analysis. The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques and so on. Improvement of science and innovation together with the increase of digital publishing could reduce the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Aqua Sim Implementation Case Study Help 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 non reusable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to analyze the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing industry. However, the existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Hazard of Alternative is high for the Chinese Publishing Market. The alternative items for the published documents is the documents provided in the digital libraries on certain sites. The changing consumer preferences towards digital knowing increase the hazard of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Aqua Sim Implementation Case Study Solution consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of large number of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Aqua Sim Implementation Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the same duration, CIP publishes comparable kind of books. For a big time period, CIP held the biggest market share, and still ranks third and second in various market segments, with a major concentrate on educational publications. CIP functions as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Aqua Sim Implementation Case Study Solution quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Aqua Sim Implementation Case Study Help and CIP. It is also one of the popular players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the business to lose demand of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the business require an instant solution to prevent the declining industry growth. The company could likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company ought to first collects the data related to the consumer need, the possible markets, the government regulations and the data related to the competitors presented in the market. If the initial offering shows a success, the company must go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing since 2008, showing a threat to the company's long term presence, but the scenario can be managed by considering a development plan in the future. The business could think about introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entryway in the new markets.
