Longtop Financial Technologies D Case Study Solution and Analysis
Introduction
Longtop Financial Technologies D Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP provides a number of services consisting of; collecting info, processing info and communication services. Major company segments of the business consist of; books, periodicals, consultancy and circulation. The business has a vast item portfolio and its major products include books, periodicals, online media, exhibits, research reports etc. Longtop Financial Technologies D Case Study Analysis has become a specialized info company and a large extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Concerns
Although, Longtop Financial Technologies D Case Study Help has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing market in basic and CMP in particular. These aspects consist of;
• Entryway of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? 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 business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Longtop Financial Technologies D Case Study Solution has particular strengths that can be made use of to minimize the threats, get rid of the weakness and get 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 provide high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its threat and supply high value to its consumers.
• Strong monetary position allows the business to think about numerous advancement opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has specific weaknesses which could increase constraints for the company in executing its development program. The weaknesses of Longtop Financial Technologies D Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain growth strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is decreasing because 2008, affecting Longtop Financial Technologies D Case Study Help too, however the growth could be restored by availing specific opportunities presented in the market. The market opportunities for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its huge financial resources.
Dangers
The altering macro patterns in the market and increasing competition in the publishing industry has positioned particular risks to Longtop Financial Technologies D Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Longtop Financial Technologies D Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using specific strategies like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the industry in addition to presence of high competition increases the hazard of losing the client base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP might not be computed. It might be examined from the Appendix III that the yearly overall profits of Longtop Financial Technologies D Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the business is rather efficient in bring in a big number of clients at a potential rate.
In addition to it, the 2nd chart which shows the annual growth in the Longtop Financial Technologies D Case Study Help total assets, reveals that the business is rather efficient in adding worth to its properties through its earnings. The development in assets reveals that the overall value of the firm is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided information might be the analysis relating to the distribution of overall incomes of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company segments with a potential development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces affecting the performance of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it might be stated that the general political forces affecting Longtop Financial Technologies D Case Study Analysis service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards checking out helpful materials and so on. China has the highest population worldwide with a high population growth, revealing the increasing number of consumers of the Longtop Financial Technologies D Case Study Help. The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies etc. Enhancement of science and innovation together with the rise of digital publishing could lower the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Longtop Financial Technologies D Case Study Help includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be used to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to draw in new entrants to the publishing market. The presence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Risk of Alternative is high for the Chinese Publishing Industry. The alternative products for the published files is the documents presented in the digital libraries on specific sites. The altering customer preferences towards digital learning increase the risk of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence 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 Provider.
The major suppliers of the Longtop Financial Technologies D Case Study Analysis consist of the providers of the paper for publishing files. 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 Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Longtop Financial Technologies D Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same period, CIP releases comparable type of books. For a big period, CIP held the largest market share, and still ranks second and third in various market sections, with a significant focus on instructional publications. CIP functions 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 could wean the market share of Longtop Financial Technologies D Case Study Solution easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also among the popular players in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is advised to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the business require an immediate solution to prevent the declining market growth. Introduction of digital publishing could prove to be an immediate solution with low amount of risk for the company. Nevertheless, the business might also consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business needs to initially collects the data related to the consumer demand, the prospective markets, the federal government regulations and the data related to the competitors provided in the market. If the initial offering shows a success, the business should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing since 2008, showing a threat to the company's long term presence, however the situation can be controlled by considering an advancement strategy in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
