Longtop Financial Technologies D Case Study Solution and Analysis
Longtop Financial Technologies D Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting info, processing details and communication services. Significant company segments of the company include; books, regulars, consultancy and distribution. The company has a large item portfolio and its significant items consist of books, regulars, online media, exhibits, research reports and so on. Longtop Financial Technologies D Case Study Solution has become a specialized information provider and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing market in basic and Longtop Financial Technologies D Case Study Help in specific. These elements include;
• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the business could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Longtop Financial Technologies D Case Study Solution has particular strengths that can be used to reduce the threats, conquer the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Longtop Financial Technologies D Case Study Help in the publishing market i.e. 60 years allows the business to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and provide high worth to its clients.
• Strong financial position allows the business to think about several development chances with no worry of raising fund externally.
Together with the strengths, the business has certain weaknesses which might increase constraints for the company in implementing its advancement program. The weaknesses of Longtop Financial Technologies D Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose certain expansion strategies to avoid its dependence over the Chinese markets to achieve long term growth.
The development of the publishing industry is declining because 2008, affecting Longtop Financial Technologies D Case Study Analysis as well, however the development might be restored by availing particular opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer 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 funds.
The altering macro patterns in the market and increasing competitors in the publishing market has posed specific dangers to Longtop Financial Technologies D Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Longtop Financial Technologies D Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing certain techniques like aggressive promo, quality products, etc.
• Entryway of brand-new publishing companies in the market along with existence of high competition increases the threat of losing the consumer base.
Due to absence of data, the monetary ratios of CMP could not be determined. It could be examined from the Appendix III that the annual overall earnings of Longtop Financial Technologies D Case Study Solution during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of CMP is growing and the company is quite efficient in bring in a big number of consumers at a potential price.
In addition to it, the second graph which reveals the annual growth in the Longtop Financial Technologies D Case Study Solution total properties, shows that the business is rather efficient in including value to its possessions through its incomes. The development in properties shows that the total worth of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company using the given data might be the analysis concerning the circulation of overall earnings of the company. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other service segments with a possible growth to attain its future advancement goal.
PESTEL analysis might be performed to learn the numerous external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a considerable influence on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. It might be said that the total political forces impacting CMP company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in general and the Longtop Financial Technologies D Case Study Solution in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces combine effect the need for the publishing market. Along with it, the economic policies related to the import of books affect the overall business at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the altering consumer choices.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Enhancement of science and innovation along with the rise of digital publishing might lower the need for the CMP items, if particular actions would not be taken soon.
Environmental forces impacting Longtop Financial Technologies D Case Study Solution includes the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be hazardous for the environment.
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 gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be utilized to evaluate the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract new entrants to the publishing industry. The presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Risk of Replacement is high for the Chinese Publishing Market. The replacement items for the published files is the documents provided in the digital libraries on certain websites. The changing consumer preferences towards digital knowing increase the risk of alternative for the industry.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Longtop Financial Technologies D Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
CMP operates in a highly competitive industry with the presence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Longtop Financial Technologies D Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same period, CIP publishes similar type of books. For a large period, CIP held the largest market share, and still ranks 3rd and 2nd in various market segments, with a significant focus on academic publications. CIP serves as a hazard 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 Longtop Financial Technologies D Case Study Help easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is likewise one of the popular gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose demand of its products in the market.
With the deep analysis of the external and internal environment of the business along with the market analysis and the rival analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the business need an immediate service to avoid the declining industry growth. For that reason, introduction of digital publishing could show to be an immediate option with low quantity of danger for the company. The business could likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business should initially collects the information related to the customer need, the possible markets, the federal government guidelines and the data related to the competitors presented in the market. If the preliminary offering shows a success, the business must go for the other markets. In this way the company would be able to execute its digital publishing program.
Although, the growth of the publishing industry is declining given that 2008, showing a hazard to the business's long term existence, but the circumstance can be controlled by considering a development plan in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.