China Aviation Oil Corporation Ltd Case Study

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China Aviation Oil Corporation Ltd

China Aviation Oil Corporations Ltd

 

Type of Industry

Jet fuel trading

Headquarters

Singapore

Sales/Revenue

US$9.68 billion

Area Served

China, Singapore

Number of Stores

NA

Competition

World Fuel Services Corp., Royal Dutch Shell Plc, Mercfuel Inc.

USP

Product monopoly

Target Group

Airline companies

Products

Jet fuel

Website

www.caosco.com

China Aviation Oil Corporation Ltd Introduction

The largest purchaser of jet fuel in the Asia Pacific region, China Aviation Oil Corporation Ltd has emerged as the key supplier of imported jet fuel to the civil aviation industry in China. The China Aviation Oil Corporation Ltd is the primary supplier of jet fuel to the three most important international airports in the People Republic of China. The China Aviation Oil Corporation Ltd case study has to be conducted in order to assess the factors that have contributed to the development of the business of China Aviation Oil Corporation Ltd. Moreover, a thorough SWOT and PESTLE analysis of China Aviation Oil Corporation Ltd is essential to add to the strength of the China Aviation Oil Corporation Ltd case study.

China Aviation Oil Corporation Ltd SWOT Analysis

Strengths

The geographical presence of China Aviation Oil Corporation Ltd, as revealed by the China Aviation Oil Corporation Ltd case study, should be considered as the primary strength of the Company. The China Aviation Oil Corporation Ltd case study has revealed that such diversified presence has helped the Company in targeting a geographically dispersed customer base. Moreover, it has been seen that a strong online presence and a wider utilization of the social media platform has added to the business growth opportunities of China Aviation Oil Corporation Ltd. Besides, it has been observed that a strong financial position of the Company has helped the Company to expand its business across the People Republic of China, targeting major key players in the Chinese aviation industry. Also, it has to be noted that the low bargaining power of the suppliers offering raw materials to the Company also should be considered as a plus point for the China Aviation Oil Corporation Ltd.

Weaknesses

One of the primary weaknesses of China Aviation Oil Corporation Ltd, as revealed by the China Aviation Oil Corporation Ltd case study is that, in a persistent way the Company has been faced with continuous criticism from the environmentalists due to the Company’s inability to integrate sustainability in their business operations. Moreover, it has been observed that the poor waste management strategies should also be considered a major weakness of the China Aviation Oil Corporation Ltd. Also, the China Aviation Oil Corporation Ltd case study has revealed that a significant weakness of the Company is poor inventory management policy.

Opportunities

The China Aviation Oil Corporation Ltd case study has revealed that the growth and expansion of the aviation industry in China has provided ample opportunities to the Company to grow and expand from the business perspective. Moreover, the China Aviation Oil Corporation Ltd case study has revealed that the development of new technologies and the specific development in the sphere of social media communication channels have provided opportunities to the Company to enhance its external communication processes and to enhance its customer outreach. Besides, globalization and liberalization of the economy has provided opportunities to the Company to identify potential suppliers on a global basis, improving its supply chain in a thorough manner.

Threats

The changing regulatory scenario and the stringent governmental policies act as the primary threats to the Company’s growth and expansion. The China Aviation Oil Corporation Ltd case study has revealed that the steady interference of the government of the People Republic of China in trade matters and business operations should also be considered as a serious threat to the growth and development of China Aviation Oil Corporations Ltd. Besides, the shortage of skill labor in the Chinese market should also be considered as a serious threat to the business of China Aviation Oil Corporations Ltd.

China Aviation Oil Corporation Ltd PESTLE Analysis

Political Environment

The political environment plays a crucial role in determining the future of a business in a thorough manner, and this holds true for China Aviation Oil Corporations Ltd. In this respect, it should be noted that the stringent political outlook of the government of People Republic of China and the strict policies of the government to take hold on the business environment of the country has affected the business of the Company in a thorough manner. Besides, the apathy of the government in aligning to the principles of globalization and trade liberalizations has also impacted on the business of the Company in a negative manner.

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Economic Environment

The economic environment of China, which is presently characterized by a shortage in the skilled labor force in the aviation oil industry, has contributed to the stunted growth of China Aviation Oil Corporations Ltd. Moreover, as the China Aviation Oil Corporations Ltd case study has revealed, the Company has been negatively impacted by the economic turmoil that should be considered as the outcome of the deteriorating political relationship between China and the United States of America. Also, the rise in inflation that has instigated the rise of the cost of production has also affected the business of China Aviation Oil Corporations Ltd.

Social/Socio-Cultural Environment

The conservative culture of the priority customer segments in terms of business transactions and business conventions has limited the growth and success of the China Aviation Oil Corporations Ltd. This, in turn, has compelled the Company to look for ways to increase its business. Such compulsion should be considered as an opportunity for the Company owing to the fact that it has motivated the Company to look for penetrating overseas markets. Besides, the popular trend among the majority members of the Chinese society to indulge in social networking has provided opportunities to the Company to strengthen its online presence through enhancing its social media utilization.

Technological Environment

Advancement in the Internet technology and enhancements ushered in the sphere of the communication technology has provided thorough opportunities to China Aviation Oil Corporation Ltd to strengthen its online presence. This, in turn, has allowed the Company to reach out to more customers and to draw the attention of potential customers on a global basis. Besides, a thorough use of the social media has also helped the Company in enhancing its customer care services in an explicit manner.

Legal Environment

The volatile legal environment of China has contributed to some specific losses faced by China Aviation Oil Corporation Ltd. Moreover, a vehemently strict legal framework has confined the businesses in China in terms of expansion and growth. This has also reduced the opportunities for the Company to reap the benefits of a free market and a liberal economic framework.

Environmental Factors

Poor waste management has contributed to the diminishing market reputation of China Aviation Oil Corporation Ltd. Moreover, the inability of the Company to maintain carbon neutrality has also limited the growth and expansion of China Aviation Oil Corporation Ltd.

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