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Longtop Financial Technologies B Case Analysis

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Longtop Financial Technologies B Case Study Solution and Analysis


Intro

Longtop Financial Technologies B Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP offers a number of services including; collecting info, processing details and interaction services. Major organisation sectors of the company consist of; books, periodicals, consultancy and distribution. The company has a huge product portfolio and its significant products consist of books, periodicals, online media, exhibits, research reports and so on. Longtop Financial Technologies B Case Study Solution has ended up being a specialized info supplier and a large extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.

Vital Concerns

CMP has invested its 60 years journey efficiently, being an effective publishing home, however, the changing macro market patterns and forces bring specific challenges to the publishing industry in basic and Longtop Financial Technologies B Case Study Analysis in specific. These elements include;

• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
Executive Summary
The change 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 situation? Do the long important experience, technical resources and the capabilities of the business 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


Longtop Financial Technologies B Case Study Solution has certain strengths that can be utilized to minimize the dangers, conquer the weak point and avail the chances. Strengths of CMP are provided as follows;

• The long term experience of Longtop Financial Technologies B Case Study Analysis in the publishing industry i.e. 60 years permits the business to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its risk and supply high value to its clients.
• Strong financial position enables the business to consider several advancement chances with no worry of raising fund externally.

Weaknesses

In addition to the strengths, the business has particular weaknesses which might increase constraints for the business in executing its advancement program. The weak points of Longtop Financial Technologies B Case Study Solution are given as follows;

• Despite of being a science and innovation publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose particular expansion strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Porter's 5 Forces Analysis
Opportunities

Although, the growth of the publishing industry is declining given that 2008, impacting Longtop Financial Technologies B Case Study Analysis as well, but the growth might be restored by availing particular opportunities presented in the market. The marketplace chances for CMP consist of;

• The company could also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge funds.

Dangers

The changing macro trends in the market and increasing competition in the publishing market has actually positioned certain threats to Longtop Financial Technologies B Case Study Solution consisting of;( Gurel, 2017).

• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Longtop Financial Technologies B Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing certain methods like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the market together with presence of high competitors increases the danger of losing the client base.

Financial Analysis.
Swot Analysis
The company has a rather competitive financial performance. Due to absence of information, the financial ratios of CMP could not be computed. The general financial efficiency of the company might be examined by utilizing the graphs offered in the case Appendices. It might be evaluated from the Appendix III that the yearly overall profits of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of Longtop Financial Technologies B Case Study Analysis is growing and the company is quite effective in attracting a large number of consumers at a potential price.

In addition to it, the second chart which shows the annual development in the Longtop Financial Technologies B Case Study Solution total assets, reveals that the business is rather effective in including worth to its properties through its revenues. The growth in properties shows that the total value of the company is also increasing with increasing the total revenues. (Unidentified, 2013).

Another monetary analysis of the business using the given data could be the analysis concerning the circulation of overall incomes of the business. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sections with a potential development to accomplish its future development objective.

PESTEL Analysis

PESTEL analysis could be carried out to learn the different external forces impacting the efficiency of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a considerable influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be stated that the overall political forces affecting Longtop Financial Technologies B Case Study Solution organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.

Economical.

Economic forces impacting the publishing sector in basic and the Longtop Financial Technologies B Case Study Analysis in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the need for the publishing market. Together with it, the economic policies related to the import of books affect the general company at CPM. However, China's economic conditions are quite beneficial for CMP with high GDP development and customer income level.

Social and Demographical.

The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer preferences.

Technological.

Technological forces impacting the CMP include the technological improvement in the reading strategies and so on. Improvement of science and technology together with the increase of digital publishing might minimize the demand for the CMP products, if particular actions would not be taken quickly.

Environmental.
Vrio Analysis
Environmental forces impacting Longtop Financial Technologies B Case Study Analysis consists of the issues of ecological neighborhoods over the usage 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 needs to not be hazardous for the environment.

Legal.

Legal regulations for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.

Industry Analysis (Porter's 5 Forces Design).

Porter's Five Forces Design could be used to analyze the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.

Threat of New Entrants.

Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to bring in brand-new entrants to the publishing market. The existence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.

Danger of Substitution.

Risk of Replacement is high for the Chinese Publishing Industry. The substitute items for the published documents is the documents provided in the digital libraries on certain websites. The changing customer preferences towards digital knowing increase the danger of alternative for the market.

Competitive Competition.

Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competition for CMP.

Bargaining Power of Supplier.

The major providers of the Longtop Financial Technologies B Case Study Analysis include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.

Bargaining Power of Purchaser.

Haggling power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.

Competitors Analysis.

CMP runs in an extremely competitive industry with the existence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Longtop Financial Technologies B Case Study Analysis consist of;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Industry 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 could wean the market share of CMP easily in the existing market situation.

Posts and telecommunication Press (PTP).

It was also established in the same duration as Longtop Financial Technologies B Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing market with an annual overall incomes of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Use of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.

Cons

• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose need of its products in the market.

Suggestions

As the choices are moving towards digital publishing and the business require an immediate solution to prevent the decreasing industry development. The company could likewise consider the expansion program after the success of its digital publishing program.

Execution

In order to present digital publishing in its product portfolio, the company needs to initially gathers the information related to the customer demand, the possible markets, the federal government policies and the data related to the rivals provided in the market. If the initial offering shows a success, the company must go for the other markets. In this way the company would be able to implement its digital publishing program.

Conclusion

Although, the development of the publishing market is declining given that 2008, revealing a risk to the business's long term presence, but the circumstance can be controlled by thinking about a development strategy in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entryway in the new markets.

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