Aqualisa Quartz 3 Case Study Solution and Analysis
Introduction
Aqualisa Quartz 3 Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting details, processing details and interaction services. Major business sections of the company include; books, periodicals, consultancy and circulation. The business has a large item portfolio and its major items consist of books, regulars, online media, exhibitions, research reports etc. Aqualisa Quartz 3 Case Study Analysis has become a specialized information supplier and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Problems
CMP has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing market in basic and Aqualisa Quartz 3 Case Study Solution in particular. These factors consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
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 circumstance? Do the long valuable experience, technical resources and the abilities of the company could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Aqualisa Quartz 3 Case Study Solution has specific strengths that can be made use of to minimize the hazards, conquer the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Aqualisa Quartz 3 Case Study Solution in the publishing market i.e. 60 years allows the business to supply high quality items at a lower cost using its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and supply high value to its clients.
• Strong financial position permits the company to consider numerous advancement chances without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weak points which could increase restrictions for the company in implementing its advancement program. The weak points of Aqualisa Quartz 3 Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific expansion plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is declining given that 2008, affecting Aqualisa Quartz 3 Case Study Solution as well, however the growth might be restored by availing specific chances provided in the market. The marketplace chances for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has postured particular dangers to Aqualisa Quartz 3 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Aqualisa Quartz 3 Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing specific strategies like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing companies in the industry along with existence of high competition increases the threat of losing the customer base.
Monetary Analysis.
The business has a rather competitive financial efficiency. Due to lack of information, the financial ratios of CMP might not be computed. However, the total financial performance of the business could be analyzed by using the charts given up the case Appendices. It might be examined from the Appendix III that the annual overall profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of Aqualisa Quartz 3 Case Study Analysis is growing and the business is quite effective in drawing in a large number of customers at a prospective cost.
Together with it, the 2nd graph which reveals the annual growth in the Aqualisa Quartz 3 Case Study Analysis total possessions, reveals that the company is rather effective in adding worth to its assets through its earnings. The development in possessions reveals that the overall worth of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company utilizing the given information could be the analysis regarding the distribution of overall profits of the company. Major 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 could move towards other organisation segments with a prospective growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the various external forces impacting the performance of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. It might be stated that the total political forces impacting CMP service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the Aqualisa Quartz 3 Case Study Help in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces integrate effect the demand for the publishing market. Along with it, the financial policies related to the import of books affect the overall company at CPM. However, China's financial conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques and so on. Improvement of science and technology together with the rise of digital publishing might minimize the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Aqualisa Quartz 3 Case Study Analysis includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper used 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 Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to examine the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to attract new entrants to the publishing industry. The existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Replacement.
Danger of Replacement is high for the Chinese Publishing Industry. The replacement products for the released documents is the files presented in the virtual libraries on particular websites. The changing consumer preferences towards digital learning increase the risk of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Aqualisa Quartz 3 Case Study Solution consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Aqualisa Quartz 3 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise one of the popular players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the effect 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: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the business require an immediate option to prevent the decreasing industry development. The company could also think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company ought to first gathers the information related to the consumer need, the possible markets, the federal government guidelines and the information related to the competitors provided in the market. If the initial offering shows a success, the company should go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining considering that 2008, revealing a hazard to the company's long term presence, however the scenario can be controlled by considering an advancement plan in the future. The business could think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entrance in the new markets.
