Longtop Financial Technologies C Case Study Solution and Analysis
Longtop Financial Technologies C Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized information provider and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring particular difficulties to the publishing industry in general and Longtop Financial Technologies C Case Study Help in particular. These aspects consist of;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement 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 circumstance? Do the long important experience, technical resources and the capabilities of the company could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Longtop Financial Technologies C Case Study Help has particular strengths that can be made use of to decrease the hazards, get rid of the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Longtop Financial Technologies C Case Study Solution in the publishing industry i.e. 60 years enables the business to provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey supply a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and offer high worth to its clients.
• Strong monetary position enables the business to think about a number of advancement opportunities without any fear of raising fund externally.
In addition to the strengths, the business has certain weaknesses which could increase constraints for the business in executing its advancement program. The weak points of Longtop Financial Technologies C Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific expansion strategies to prevent its dependence over the Chinese markets to achieve long term growth.
The growth of the publishing market is declining since 2008, affecting Longtop Financial Technologies C Case Study Solution as well, however the development could be restored by availing particular chances provided in the market. The marketplace opportunities for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its large financial resources.
The changing macro trends in the market and increasing competitors in the publishing market has posed particular risks to Longtop Financial Technologies C Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Longtop Financial Technologies C Case Study Help due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using specific strategies like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the market together with existence of high competitors increases the risk of losing the consumer base.
Due to absence of information, the financial ratios of CMP could not be computed. It could be evaluated from the Appendix III that the yearly overall revenues of Longtop Financial Technologies C Case Study Solution during the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of CMP is growing and the business is rather efficient in attracting a big number of consumers at a possible price.
In addition to it, the 2nd chart which reveals the yearly growth in the Longtop Financial Technologies C Case Study Solution overall assets, reveals that the business is rather efficient in adding value to its assets through its incomes. The development in assets shows that the overall worth of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered data could be the analysis relating to the circulation of total revenues of the company. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation segments with a possible development to achieve its future advancement goal.
PESTEL analysis could be performed to discover the different external forces affecting the performance of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a substantial influence on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the overall political forces impacting Longtop Financial Technologies C Case Study Help company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Longtop Financial Technologies C Case Study Help in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the need for the publishing market. Along with it, the economic policies associated with the import of books impact the general company at CPM. China's financial conditions are rather favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing customer choices.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Enhancement of science and innovation together with the rise of digital publishing might decrease the demand for the CMP items, if particular actions would not be taken soon.
Environmental forces impacting Longtop Financial Technologies C Case Study Help includes the concerns 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 used while publishing should not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be utilized to analyze the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to draw in brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Danger of Replacement.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement items for the released documents is the documents provided in the virtual libraries on specific websites. The altering customer preferences towards digital learning increase the threat of alternative for the market.
Competitive competition in the publishing market is high. The presence of a great deal of customers 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 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 Solution consist of the suppliers 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 Buyer.
Negotiating power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive prices.
CMP operates in an extremely competitive market with the existence of large number of rivals. Nevertheless, 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 C Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise one of the popular players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Usage of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
• 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.
With the deep analysis of the external and internal environment of the business together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the company need an instant service to avoid the declining industry growth. For that reason, introduction of digital publishing might show to be an instant option with low amount of danger for the company. However, the company could also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company should initially gathers the data associated with the consumer need, the possible markets, the federal government regulations and the information connected to the rivals provided in the market. After that, the company needs to choose one prospective segment for its initial offering. It needs to gather research that how it might separate its digital publishing from the existing competitors' products. After all the steps above the company ought to go for the preliminary offering. The company needs to go for the other markets if the preliminary offering shows a success. In this method the business would have the ability to execute its digital publishing program.
The growth of the publishing market is decreasing because 2008, revealing a threat to the company's long term presence, however the scenario can be controlled by thinking about an advancement plan in the future. The company could think about presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entryway in the new markets.