Longtop Financial Technologies C Case Study Solution and Analysis
Introduction
Longtop Financial Technologies C Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services including; collecting info, processing information and interaction services. Major business sections of the business include; books, regulars, consultancy and circulation. The company has a large product portfolio and its major items include books, regulars, online media, exhibits, research reports and so on. Longtop Financial Technologies C Case Study Analysis has actually become a specialized information provider and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Concerns
Although, Longtop Financial Technologies C Case Study Solution has actually spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring specific challenges to the publishing market in general and CMP in particular. These elements include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
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 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 C Case Study Solution has specific strengths that can be utilized to minimize the hazards, conquer the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Longtop Financial Technologies C Case Study Analysis in the publishing industry i.e. 60 years allows the company to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and provide high value to its customers.
• Strong monetary position allows the company to think about several advancement opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weak points which might increase restraints for the business in executing its development program. The weak points of Longtop Financial Technologies C Case Study Analysis 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 highly relies over the Chinese markets for its growth. It ought to propose particular expansion strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is declining since 2008, affecting Longtop Financial Technologies C Case Study Analysis too, but the development might be restored by availing certain opportunities presented in the market. The market chances for CMP consist of;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge financial resources.
Risks
The changing macro patterns in the market and increasing competitors in the publishing industry has posed certain dangers to Longtop Financial Technologies C Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Longtop Financial Technologies C Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing particular techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the industry along with existence of high competitors increases the hazard of losing the customer base.
Financial Analysis.
The company has a rather competitive monetary performance. Due to lack of data, the financial ratios of CMP could not be determined. The general monetary efficiency of the company could be analyzed by using the graphs offered in the case Appendices. It might be analyzed from the Appendix III that the annual total revenues of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of Longtop Financial Technologies C Case Study Analysis is growing and the business is rather efficient in attracting a a great deal of consumers at a potential rate.
Along with it, the 2nd chart which reveals the yearly growth in the Longtop Financial Technologies C Case Study Help overall properties, shows that the business is quite effective in including value to its possessions through its incomes. The development in assets reveals that the overall worth of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the business using the given information could be the analysis relating to the circulation of total profits of the company. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service segments with a potential development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the various external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the general political forces affecting Longtop Financial Technologies C Case Study Solution company are high. The government policies regarding 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 rates of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies etc. 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.
Environmental forces affecting Longtop Financial Technologies C Case Study Solution includes the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be utilized to examine the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract new entrants to the publishing industry. The existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement products for the released files is the documents provided in the virtual libraries on certain websites. The changing customer choices towards digital learning increase the threat of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Longtop Financial Technologies C Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Longtop Financial Technologies C Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it could 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 existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Longtop Financial Technologies C Case Study Solution and CIP. It is also one of the popular players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate 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 products in the market.
Recommendations
As the preferences are moving towards digital publishing and the company require an instant service to avoid the declining market growth. The business could likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company needs to first gathers the information related to the customer demand, the potential markets, the federal government policies and the information related to the competitors presented in the market. If the preliminary offering shows a success, the business should go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining since 2008, revealing a hazard to the company's long term presence, however the situation can be managed 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 instant basis and to prevent the risk of failure for entryway in the new markets.
