Longtop Financial Technologies B Case Study Solution and Analysis
Intro
Longtop Financial Technologies B Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services including; collecting details, processing info and communication services. Major company sections of the business include; books, periodicals, consultancy and distribution. The company has a huge product portfolio and its significant products consist of books, regulars, online media, exhibits, research reports and so on. Longtop Financial Technologies B Case Study Analysis has become a specialized info company and a large thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Issues
CMP has actually invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring specific obstacles to the publishing industry in basic and Longtop Financial Technologies B Case Study Help in specific. These factors include;
• Entryway of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the company could be used to pursue the future development 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 made use of to lower the dangers, overcome the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Longtop Financial Technologies B Case Study Analysis in the publishing industry i.e. 60 years allows the business to supply high quality products at a lower expense using its prior experiences.
• The technical resources and abilities produced by its effective journey provide a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and supply high value to its consumers.
• Strong financial position permits the business to consider a number of development chances without any fear of raising fund externally.
Weak points
Together with the strengths, the company has certain weak points which could increase constraints for the business in executing its development program. The weak points of Longtop Financial Technologies B Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular growth strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing market is declining given that 2008, impacting Longtop Financial Technologies B Case Study Help too, but the growth could be restored by availing specific chances provided in the market. The marketplace opportunities for CMP include;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its huge financial resources.
Threats
The altering macro trends in the market and increasing competitors in the publishing market has positioned certain threats to Longtop Financial Technologies B Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Longtop Financial Technologies B Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing certain methods like aggressive promo, quality products, etc.
• Entryway of brand-new publishing companies in the industry in addition to presence of high competitors increases the risk of losing the client base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP could not be determined. It might be evaluated from the Appendix III that the annual overall revenues of Longtop Financial Technologies B Case Study Help throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of CMP is growing and the business is quite efficient in attracting a big number of consumers at a potential rate.
In addition to it, the 2nd chart which shows the yearly growth in the Longtop Financial Technologies B Case Study Help overall assets, shows that the business is rather efficient in including worth to its properties through its earnings. The growth in assets shows that the total value of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given data might be the analysis regarding the circulation of total incomes of the company. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other service segments with a potential development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the numerous external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. For that reason, it might be stated that the total political forces affecting Longtop Financial Technologies B Case Study Analysis service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Improvement of science and technology in addition to the increase of digital publishing might minimize the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Longtop Financial Technologies B Case Study Solution consists of 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 disposable 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 authorized initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to analyze the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract brand-new entrants to the publishing industry. The presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Hazard of Alternative.
Risk of Replacement is high for the Chinese Publishing Market. The replacement products for the released files is the files presented in the digital libraries on particular sites. The altering consumer preferences towards digital learning increase the risk of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Longtop Financial Technologies B Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider 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 marketplace saturation, the buyers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Longtop Financial Technologies B Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same duration, CIP publishes comparable type of books. For a large period, CIP held the largest market share, and still ranks third and second in various market segments, with a significant concentrate on academic publications. CIP functions as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Longtop Financial Technologies B Case Study Solution quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was also established in the same period as Longtop Financial Technologies B Case Study Solution and CIP. It is likewise one of the popular gamers in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the business require an immediate solution to avoid the decreasing market development. The business might also think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business ought to first gathers the data related to the consumer demand, the prospective markets, the federal government guidelines and the information connected to the rivals presented in the market. After that, the company needs to decide one potential section for its initial offering. It needs to collect research that how it could separate its digital publishing from the existing rivals' products. After all the actions above the business must go for the initial offering. If the preliminary offering shows a success, the company must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining considering that 2008, showing a danger to the business's long term existence, however the circumstance can be managed by considering a development plan in the future. The company could consider presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the new markets.
